Probate Sale Process in California
From the day a personal representative is appointed to the day escrow closes — a step-by-step walkthrough of how a California probate real estate sale actually runs, including the IAEA shortcut and the overbid hearing process.
Two paths through the same statute.
California probate sales are governed by the Probate Code and run through the Superior Court of the county where the decedent resided. Every probate sale follows the same opening sequence — petition, Letters, valuation — but splits into one of two closing paths: a streamlined sale under Independent Administration of Estates Act (IAEA) authority, or a traditional confirmation hearing with open-court overbid.
The right path depends on the authority the court grants the personal representative, whether any heir objects, and the nature of the property. Most cooperative estates close under IAEA. Sales that go to confirmation take longer but protect the estate when heirs disagree on price or terms.
The probate sale, in order.
Total time from petition to close ranges from 4 to 9 months depending on court calendar, IAEA authority, and whether the sale requires confirmation.
- Step 1Petition for Probate filed
The personal representative (or proposed PR) files a Petition for Probate with the Superior Court in the county where the decedent resided. The petition nominates the PR, identifies heirs, and requests authority to administer the estate — typically with full IAEA authority.
- Step 2Letters Testamentary or Letters of Administration issued
After the hearing — typically 30 to 60 days after filing — the court issues Letters granting the PR authority to act. The Letters are the document title companies, banks, and brokers require before any property transactions begin.
- Step 3Property valuation by the Probate Referee
Real property is appraised by a court-appointed Probate Referee. The Referee's value sets the floor for sale price under the 90% rule (covered below) and is used in the Inventory and Appraisal filed with the court.
- Step 4Listing the property
Under full IAEA authority, the PR can list and accept offers without prior court approval. Under limited IAEA — or in any sale that will go to confirmation — the listing must comply with marketing requirements designed to expose the property to the market.
- Step 5Offer accepted
The PR signs a Probate Purchase Agreement (CAR form PPA) with the buyer. The contract includes probate-specific contingencies and discloses whether the sale requires court confirmation or proceeds under IAEA notice procedures.
- Step 6a — IAEA pathNotice of Proposed Action
Under full IAEA authority, the PR sends a Notice of Proposed Action (NOPA) to all interested parties. If no one objects within 15 days, the sale closes without a court hearing — the most common path for cooperative estates.
- Step 6b — Confirmation pathPetition for Confirmation of Sale
If court confirmation is required (limited IAEA, or contested estate), the PR files a Report of Sale and Petition for Confirmation. A hearing is set 30 to 45 days out and notice is published.
- Step 7 — Confirmation onlyCourt hearing & overbid
At the confirmation hearing, the court entertains overbids in open court starting at the original price + 10% of the first $10,000 + 5% of the balance. The successful bidder takes the contract; the original buyer is released. The court issues an order confirming the sale.
- Step 8Close of escrow
Escrow closes per the order or NOPA, with the PR signing as seller. Net proceeds go into the estate account. The PR accounts for the sale in the next interim or final accounting filed with the court.
How probate pricing and bidding actually work.
The 90% rule. In a confirmation sale, the accepted offer must be at least 90% of the Probate Referee's appraised value. Lower offers can be submitted but the court generally won't confirm them without a showing of why the appraised value is no longer realistic.
The overbid formula. At the confirmation hearing, anyone may bid against the accepted offer. The minimum first overbid is calculated as: accepted price + 10% of the first $10,000 + 5% of the balance. After the first overbid, the judge sets subsequent increments.
Overbidders must appear at the hearing with cashier's check for at least 10% of their bid and be prepared to close on the same terms as the accepted offer.
What escrow and the buyer's lender will require.
Probate sales require a specific documentation set in addition to the standard purchase paperwork. Missing or stale Letters are the most common cause of last-minute delays.
- Certified Letters Testamentary or Letters of Administration
- Order for Probate or Order Appointing Personal Representative
- Inventory & Appraisal with Probate Referee valuation
- Probate Purchase Agreement (CAR form PPA)
- Notice of Proposed Action (IAEA path) or Report of Sale & Petition for Confirmation
- Order Confirming Sale (confirmation path) signed by the judge
- Death certificate (certified copy) for title and recording
Things that catch personal representatives by surprise.
Letters expire. Title companies typically require Letters dated within 60 days of close. On a long escrow, the PR may need to obtain re-issued Letters from the court before the sale can fund.
Disclosures still apply — mostly. PRs are exempt from the Transfer Disclosure Statement, but statutory natural hazard disclosures, lead-based paint disclosures, and known material facts must still be provided.
Cash offers aren't always preferred. On confirmation sales especially, a financed offer with strong terms can be confirmed over a cash offer at the same price if the PR (and court) view the financed buyer as more reliable through the overbid process.
The PR's commission is statutory. Personal representative compensation follows a percentage schedule in Probate Code §10800, calculated on the gross value of the estate. Real estate commissions are negotiated separately and disclosed in the petition for confirmation.
Probate
How we work with personal representatives and probate counsel day-to-day — from initial property assessment through court confirmation hearings and close.
Newly appointed personal representative?
A 20-minute call covers the early decisions that affect everything downstream — Probate Referee valuation timing, IAEA authority, occupancy and security, and whether the property is best sold under NOPA or through confirmation.